Consumer Surplus Calculator

Calculate Consumer Surplus



Formula

The formula to calculate the Consumer Surplus (CS) is:

\[ CS = MP - AP \]

Where:

What is Consumer Surplus?

The consumer surplus is defined as the difference between the maximum price a customer is willing to pay for a good and the actual price the good is sold at. It represents the benefit or value that consumers receive when they pay less for a product than what they are willing to pay.

Example Calculation

Let's assume the following values:

Using the formula to calculate the Consumer Surplus:

\[ CS = 100 - 75 = 25 \]

The Consumer Surplus is $25.